- Bitcoin Cash is subtly in the red following the rejection from highs above $236.
- Indicators display a short-term bearish bias but the falling wedge pattern keeps the hope of recovery alive.
Bitcoin Cash is strongly bearish due to the momentum that has ejected it from the levels above $230. Recently the price hit highs above $236 before the correction began. The focus had shifted from $230 to $240, however, a short-term correction seems necessary for the creation of fresh demand likely to send BCH back to $300.
For now, BCH/USD is trading slightly in the red while struggling to hold the ground above the short term support at $225. The immediate upside is barricaded by the congestion of sellers at $227. Also in the line of attack is the 50 Simple Moving Average (SMA) on the one-hour chart currently at $230.
As mentioned the short-term support to the downside is $225. Further corrections towards $220 will find refuge at the 100 SMA currently at $222. The major support lies at $205 – $210 but $200 is set to come in handy the event losses target much lower levels.
Meanwhile, the Moving Average Convergence Divergence suggests that Bitcoin Cash has a bearish bias in the short-term. The bearish cross shows that the bears are gaining traction. However, the Relative Strength Index is making a gradual recovery towards the average as a sign of an improving bullish picture.
Above all that, a short-term falling wedge pattern dictates that Bitcoin Cash will soon breakout into a rally targeting $240.
BCH/USD 60′ chart
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